5th International Disaster and Risk Conference IDRC 2014 Integrative Risk Management - The role of science, technology & practice 24-28 August 2014 in Davos, Switzerland

1. The OECD Recommendation on
the Governance of Critical Risks
Resilience is key
IDRC DAVOS 2014
OECD High-Level Risk Forum

2. A new context: Governments are facing
novel risks in a complex landscape
• Increased major shock events
– Large-scale, novelty, complexity, trans-boundary and
cascading effects
• Increased vulnerabilities of modern societies
– Mobility, interdependency, interconnectedness, climate
change, concentration, urban & coastal development
• Reduced capacities of national governments, new
stakeholders, increased citizen’s expectations
– Privatisation, decentralisation, social networks, media
scrutiny

3. Risk drivers: Interconnected economies
are confronted with cascading impacts
80%
70%
60%
50%
40%
30%
20%
10%
0%
Luxembourg
Korea
Global value chain participation index in OECD countries, 2009
Czech Republic
Slovak Republic
Ireland
Belgium
OECD
Netherlands
Hungary
Finland
Austria
Sweden
Estonia
Norway
Slovenia
Switzerland
Chile
Portugal
Denmark
Israel
Germany
Poland
Japan
France
Australia
Greece
United Kingdom
Mexico
Spain
Italy
United States
Turkey
Canada
New Zealand
Global value chain participation index (GVC)
Source: Mirdoudot, S. and K. De Backer (2012), “Mapping Global Value Chains”, OECD, www.oecd.org/dac/aft/MappingGlobalValueChains_web_usb.pdf
• GVCs creates the potential for shocks to propagate
• Critical infrastructure are key factors of resilience

4. Objective: Ensure that governments develop
robust frameworks for the governance of critical
risks and their resilience to major shocks
Adopted by the OECD Ministers in May 2014
Close cooperation with the UN and the revision of the HFA
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The OECD Recommendation on the
governance of critical risks
1. A holistic approach to risk management
2. Risk assessment, foresight, financing framework
3. Whole-of-society approach to prevention
4. Strategic crisis management
5. Transparency, accountability, improvement
Source: OECD (2014), Recommendation of the Council on the Governance of Critical Risks

5. « Establish and promote a comprehensive, all-hazards
and trans-boundary approach to country risk
governance to serve as the foundation for enhancing
national resilience and responsiveness»
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Principe 1: A holistic approach to risk
management
• National strategy for governance of critical risks
• Leadership, roles and responsibility
• Whole-of-government – aligning priorities
• Whole-of-society - PPP

6. « Build preparedness through foresight analysis, risk
assessments and financing frameworks, to better anticipate
complex and wide-ranging impact»
Crisis development
• Capacities for risk assessment and foresight
• Linkages with capabilities planning
• Ex-ante financing mechanisms for contingent liabilities
• Cf G20/OECD Framework for Disaster Risk Assessment
and Financing
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Principe 2: risk assessment, foresight,
financing frameworks
Decade Year Month Day
Hour

7. « to raise awareness of critical risks to mobilise
households, businesses and international
stakeholders and foster investment in risk
prevention and mitigation »
• Risk communication and culture (2 ways)
• Business continuity (focus on critical infrastructures)
• Mix of structural and non-structural measures
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Principe 3: Whole-of-society
approach for prevention

8. Source: OECD (2014), Boosting resilience through innovative risk governance, http://www.oecd.org/governance/risk/boosting-resilience-through-innovative-risk-
management.htm
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Unleash the potential for whole-of-society
resilience efforts
• Why investments in prevention are so
limited despite their benefits?
• Shortcomings in risk governance:
o Lack of private sector engagement in
business continuity efforts
o Reluctance of citizens to self-protect
o Limited rewards and low visibility for
politicians to invest in prevention
o Gaps in enforcement of regulation
o Dis-incentivising effects of post-disaster
funding by governments
Institutions matter to resolve gaps in resilience

9. Principe 4: Strategic Crisis Management
« Develop adaptive capacity in crisis management by
coordinating resources across government, its agencies
and broader networks to support timely decision-making,
communication and emergency responses »
• Strategic crisis management capacities
• Leadership, early-warning, sense-making
• Inter-agency and international coordination
• Subsidiarity & scaling-up capacities
OECD network of
Strategic Crisis Managers 9

10. Principe 5: Good governance in risk
decision-making
« To demonstrate transparency and accountability in risk-related
decision making by incorporating good governance
practices and continuously learning from experience and
science »
• Transparency and accountability in risk management
decisions, based on knowledge and communication
• Trade-offs decision informed by the full risk portfolio
• Feedback mechanisms and continuous improvements
Fostering trust in government and in public
institutions 10

11. From Commitments to Action: sharing of
best practices through peer reviews
• Peer-reviews, a key OECD practice for:
– cross-learning and experience sharing
across countries in terms of risk
management and governance
– enabling policy reform with useful policy
recommendations and inclusive dialogue
• Partnership in HFA Reviews with
UNISDR/EC in Europe
• Credibility, objectivity, impact and
relevance
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12. • Bring political momentum to risk management on the
way to Sendai WCDRR
• Complementarity with the Hyogo Framework for Action
– Focus on complex risks and governance
– Focus on whole of society and whole of government approach
• Development of a policy toolkit to facilitate
implementation
• Used to support and evaluate countries risk management
policies and practices
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Next steps

13. Contact:
Stéphane Jacobzone
OECD High Level Risk Forum
Stephane.jacobzone@oecd.org
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THANK YOU